Am I missing something or LOC has nothing to do in the calculation of margin required? I don't see why LOC limit has to be checked if that is not A, B or C
If I understand correctly the wiki says the margin required can be reduced based on the result from the deduction from capital available for which LOC is needed? But if deduction > 0 then we don't even need to check LOC because margin would just be equal to 20% of A+B+C? Or do we need to check LOC anyway?
Comments
You missed the second bullet point. Check step 3b in the example
If I understand correctly the wiki says the margin required can be reduced based on the result from the deduction from capital available for which LOC is needed? But if deduction > 0 then we don't even need to check LOC because margin would just be equal to 20% of A+B+C? Or do we need to check LOC anyway?
Well how would you determine the deduction without checking your LOC limit?